Guangdong’s Provincial Office of the State Administration of Taxation (SAT) released a regulation concerning the VAT deduction certificates of VAT general taxpayers in the province on November 14, clarifying deduction conditions and periods for five types of deduction certificates. Detailed information can be found below.
Type 1: VAT Special Invoice
A. General VAT Special Invoice
Applicable tax rates
17 percent
13 percent
6 percent
3 percent
Deductible tax amount
Input tax shall be deducted based on the amount of VAT indicated on the invoices.
Deduction conditions
The deduction shall be carried out within the deduction period and certification formalities with competent taxation authorities are required before deduction.
Deduction period
Certification formalities with taxation authorities shall be carried out within 180 days after the issuance of such invoices, and deduction of input tax shall be filed with the competent taxation authorities during the following month after the certification.
Notes
Online certification available
B. VAT Special Invoice for the Goods Transportation Industry
Applicable tax rates
11 percent
3 percent
Deductible tax amount
Input tax shall be deducted based on the amount of VAT indicated on the invoices.
Deduction conditions
The deduction shall be carried out within the deduction period and certification formalities with competent taxation authorities are required before deduction.
Deduction period
Certification formalities with taxation authorities shall be carried out within 180 days after the issuance of such invoices, and deduction of input tax shall be filed with the competent taxation authorities during the following month after the certification.
Notes
Online certification is not available
C. Uniform Invoice for the Sale of Motor Vehicles
Applicable tax rate
17 percent
Deductible tax amount
Input tax shall be deducted based on the amount of VAT indicated on the invoices.
Deduction conditions
The deduction shall be carried out within the deduction period and certification formalities with competent taxation authorities are required before deduction.
Deduction period
Certification formalities with taxation authorities shall be carried out within 180 days after the issuance of such invoices, and deduction of input tax shall be filed with the competent taxation authorities during the following month after the certification.
Notes
Online certification is not available
Type 2: Special Import VAT Payment Certificate for Customs
Applicable tax rates
17 percent
13 percent
Deductible tax amount
Input tax shall be deducted based on the amount of VAT indicated on the invoices.
Deduction conditions
Deductions for the special tax payment certificates of import VAT obtained from customs shall be carried out within the deduction period, audit applications shall be filed with the competent taxation authorities before deductions, and deductions may be carried out where the audit results are consistent.
Deduction period
Applications for audit by submitting the �List of Custom Duty-paid Certificate for Deduction (including the hard copy information and the electronic data)� shall be filed with the taxation authorities within 180 days after the issuance of the special tax payment certificate for custom import VAT. Where the audit results are consistent, the application for deduction shall be made within the declaration period of the current month, failing which the deduction cannot be carried out.
Notes
Deduction lists can be reported online and audit results can be downloaded online.
Type 3: Settlement Documents for Transportation Expenses
Applicable deduction rate
7 percent
Deductible tax amount
Input tax shall be calculated based on the amount of transportation expenses indicated on the settlement documents and a 7 percent deduction rate.
Deduction conditions
Where services provided by the transportation industry have been received and settlement documents of transportation expenses issued by taxpayers in the non-pilot regions are obtained, the deductions for uniform invoices of road and inland river freight transportation shall be carried out within the deduction period. Certification formalities with the competent taxation authorities are required before deduction.
Deduction period
Certification formalities for uniform invoices of road and inland river freight transportation with the taxation authorities shall be carried out within 180 days after the issuance of such invoices. No deduction period has been prescribed for settlement documents of other transportation expenses.
Notes
Online certification is not available for uniform invoices of road and inland river freight transportation.
Type 4: Invoices for the Purchase and Sale of Agricultural Products
Applicable deduction rate
13 percent
Deductible tax amount
Input tax shall be calculated based on the purchase price of agricultural products indicated on the invoices and a 13 percent deduction rate.
Deduction conditions
For agricultural products purchased from agricultural producers, the invoices for purchases of such products shall be issued by the purchasing units for deduction purposes. For agricultural products purchased from small-scale taxpayers, the invoices for purchases of such products shall be obtained for deduction purposes.
Deduction period
No deduction period has been prescribed for such certificates
Type 5: General Tax Payment Certificate of the People’s Republic of China
Applicable tax rates
11 percent
6 percent
Deductible tax amount
Input tax shall be deducted based on the amount of VAT indicated on the general tax payment certificate.
Deduction conditions
For taxable services (excluding processing, repairing and replacement services) received from entities or individuals outside China, the �General Tax Payment Certificate of the People’s Republic of China� obtained from the tax authorities or agents in China, the written contract, the payment certificate, and the statement or invoices issued by the entities outside China are required for deduction purposes.
